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Spring sleep makes you sleepless, don't think it's too early to get rich. There was a sound of wind and rain at night, and treasures rolled all over the ground. In 2022, do Amazon sellers still have a chance to get rich? The outbreak of the epidemic in 2020 changed global consumption patterns, and traffic on e-commerce platforms increased sharply. Many cross-border sellers made a fortune, and the profits of the entire cross-border e-commerce industry grew positively, which is really eye-catching. Based on this, a large number of sellers have flocked to Amazon, the leading cross-border e-commerce market, hoping to take advantage of the epidemic to realize their "dream of getting rich quickly." However, with the sudden outbreak of Amazon's account ban in May 2021 and increasingly fierce competition, many cross-border sellers have begun to wake up from their "dream of getting rich quickly", and some sellers have even chosen to leave quietly. "No matter how much you lose when you run Amazon, you must keep 3,000 to 4,000 yuan. Otherwise, when you want to deliver food and don't even have money to buy an electric bike, there will be no way out." "Thank you, I was helpful." ▲ The picture comes from the seller communication group Selling stores to cash in has become a new trend, and Amazon sellers are flocking to it It is learned that recently, many sellers in the seller communication group have announced the sale of their stores: "For those of you who do FBM, I sell you a full-site FBM account. The legal person can be contacted and you can rest assured about the account." “Selling a US store + a children’s category trademark.” "Accounts in operation for sale." ▲ The picture comes from the seller communication group One of the sellers also detailed the specific situation of his store: due to limited operational capabilities, he plans to sell his own Amazon US site, including the company, the US site and 20 categories of US trademarks as a package. ▲ The picture comes from the seller communication group From the above, we can see that in the highly competitive environment of Amazon, selling stores to generate cash seems to have become a new trend. In addition to a large number of small and medium-sized sellers who choose to sell their Amazon stores, we also learned that even some of the top Amazon sellers have chosen to sell their own stores. However, compared with the simple store sales of small sellers, the sales of big sellers are brands with higher thresholds, so the returns they get are higher, and the high purchase prices offered by brand acquirers are hard to resist. Last July, Amazon's Web Deals Direct (WDD), which owns 30 private brands and has an annual revenue of $80 million, chose to sell its stores to brand acquirer Perch for a price between $100 million and $200 million. In addition, a seller who has been deeply involved in the home furnishing category for many years also told me that an acquirer found the seller and proposed to acquire the seller's brand and related accounts for 50 million yuan. It is understood that the seller currently has an operation team of more than a dozen people, and this acquisition price is several times the company's annual profit. In this regard, the seller admitted: Now the risk of doing business on Amazon is getting bigger and bigger. If you can cash out so much cash at one time and experience vacation life in advance, it is also a good choice. ▲ The picture comes from the seller communication group At the same time, due to Amazon's unique brand competitive advantage, the Amazon acquisition market has also gained more and more capital favor. Financing exceeds $14 billion, brand acquisitions are hot Brand acquirers are called Amazon Aggregators, which adopt the model of "capital acquisition + brand operation" to empower and further develop and expand acquired third-party brands. It is learned that according to Marketplace Pulse, as of now, Amazon Aggregator has attracted more than US$14 billion in financing. Among the 52 Amazon Aggregators with public financing information, 32 have obtained more than US$100 million in financing. ▲ Data from Marketplace Pulse Among them, Thrasio, founded in 2018 and the world's largest Amazon acquisition company, has completed more than ten rounds of financing with a total amount of US$3.4 billion, leading the global Amazon M&A industry. There is no doubt that Amazon Aggregators from all over the world are springing up and growing rapidly with the help of capital. Among them, Chinese sellers with the greatest growth potential on Amazon have become the main target of Amazon Aggregators. It is learned that from 2018 to 2021, active Chinese brands and the growth rate of GMV generated by them on Amazon have become the most important driving force of the platform. About 600,000 Chinese sellers can generate $135 billion in GMV transactions, accounting for more than one-third of Amazon's total market. Backed by the advantages of China's manufacturing and supply chain, this share is expected to increase to 45% by 2025. But at the same time, despite the huge market, Chinese sellers are also constrained by factors such as financial strength and marketing capabilities, making it difficult to achieve branding. Therefore, with the entry of Thrasio, a leading Amazon Aggregator company, into China in the first half of 2021, whether a Chinese company can be born in Amazon Aggregator has become a hot topic in the field. There is no doubt that, in comparison, third-party seller acquisition companies from China absolutely have incomparable local advantages. In this regard, Nebula Brands, founded in 2019, is a pioneer representative in the Amazon Aggregator Chinese camp. China's first Amazon brand acquisition group It is learned that Nebula Brands was established in 2019. It is the first Amazon brand acquisition company in China to receive investment from well-known VC, PE and banks . It entered the track with a brand acquisition model, focusing on categories such as household products, personal care, fitness, beauty and pet products that have a long life cycle, are easier to build brands, and have China's supply chain advantages. It is learned that since entering the Amazon acquisition business in 2020, Nebula Brands has been committed to helping more Chinese consumer brands grow and build branding on the Amazon platform through the "capital acquisition + brand operation" model, and maintaining the continued growth of acquired brands with capital, professional operations, technology and data support. After taking over the brand, Nebula Brands will conduct a comprehensive brand planning, clarify the internal and external reasons why the original sellers cannot continue to grow, and consider factors such as industry competition pattern, operation team capabilities, supply chain development, and capital flow. It will also optimize brand positioning, channel layout, supply chain upgrades, and overseas launches. Each module will be handed over to a professional team in this field. In December 2021, Nebula Brands received more than US$50 million in Series B financing, led by L Catterton, the world's largest investor focused on the consumer industry, with follow-up investments from old shareholders Matrix Partners and Alpha Community . Its growth potential cannot be ignored. So, as a local brand acquisition company, where are the localization advantages of Nebula Brands manifested? It is believed that Nebula Brands' localization advantages mainly include the following three points: 1. Nebula penetrates into China’s supply chain industry, which is conducive to efficient supply chain integration More than 70% of Amazon's product supply chains come from China, so many different products can be integrated into the same factory for production, and even intelligent production scheduling and logistics can be performed. Most of these value creations require local companies to go deep into various links of the industrial belt to complete. 2. Similar cultural concepts lead to more flexible trading methods and a high trust foundation Nebula's core investment and valuation teams are all in China, so they can respond to sellers immediately and communicate with them face-to-face, making it easier to build trust. At the same time, Nebula can more easily understand the business characteristics of Chinese sellers, respect sellers' trading habits, and flexibly formulate communication and transaction plans. 3. Nebula attaches great importance to establishing long-term partnerships with sellers and sharing resources to achieve win-win results Nebula cherishes the hard work of every seller in cultivating their brand and is willing to devote more group resources to share the benefits of brand growth with sellers. Other Amazon businesses that sellers have not sold can also get support from Nebula's professional teams such as finance and supply chain at cost price. As Guan Zhong said: A wise man is good at planning, but it is not as good as it was at the time.
Nowadays, in this rapidly changing cross-border circle, competition in the Amazon market is becoming increasingly fierce, and those sellers who know how to seize opportunities and firmly grasp the "brand possibilities" are more likely to become the ultimate winners. Whether you want to sell your store Still want to know about brand acquisition business Scan the QR code below to add the investment manager WeChat for consultation~
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